Consumer surplus is higher under a single-price monopoly than it is under a perfectly price-discriminating monopoly.

Question

Quizplus · Accepted Answer

In a single-price monopoly, the monopolist charges the same price to all consumers, resulting in some consumer surplus. In a perfectly price-discriminating monopoly, the monopolist captures all consumer surplus by charging each consumer their maximum willingness to pay, leaving no consumer surplus.

Consumer Surplus Is Higher Under a Single-Price Monopoly Than It